403(b) Plan Audit Services

Are You Ready for the Change?

On July 26, 2007, the Internal Revenue Service (IRS) issued final regulations for tax sheltered annuity arrangements under section 403(b). Given that the first 403(b) regulations were issued in 1964, these regulations were more than 40 years in the making. As you would expect, these final regulations provide for significant changes in the way 403(b) plans must be maintained and administered. Is your organization
ready for the change? The impact on employers will include the following:

• Increased employer fiduciary responsibility
• Written plan document requirements
• Written descriptions of all availalbe investment options
• Stricter transfer rules
• Bright-line test for universal availability rule
• Annual meaningful notice to plan participants
• Other changes regarding deposits, catch-up contributions, Form 5500 and plan termination

What You Can Do Now

• Select an auditor that is experienced in employee benefit plan auditing
• Communicate with your service providers to ensure you have all the necessary documentation
• Identify and obtain the 2008 plan investment information
• Assemble participant records (complete)
• Ensure your plan books are in good shape
• Establish or check your internal controls
• Ensure the plan document is up-to-date and compliant with all tax laws
• Establish or review the investment policy
• Plan for the audit and preparation of the Form 5500